The Cοrporate Αffairs Cοmmission (CAC) is a regulatory body set up to administer Nigerian entities. Recently, it has launched a new e-registration platform, due to which company registration in Nigeria can be done remotely. As specified by the law, an entry in a registrar of this regulator is a compulsory term for setting up a Nigerian business presence. Below is an overview of the rules for the Nigerian entity setup.
Requirements for a Nigerian company
- A company in Nigeria can be formed by one person who can act as both executive and shareowner where no foreign citizens will be engaged in the company.
- If noncitizens will be engaged, at least 2 directors should be designated. If shareholders are foreign citizens, at least 2 persons should act as shareholders.
- A foreign corporation can set up a branch and be the sole shareowner if a such model has at least 2 executives.
- A private company with only local management is not compulsory obliged to nominate a secretary, whereas a company owned by foreign citizens or involving overseas participation must nominate a secretary.
- Each entity must have a physical presence in Nigeria.
- Executives and shareowners must be above eighteen years old.
- Citizens can form a business with any authorized capital amount; whilst a foreigner should have at min. ₦10 million capital to set up a company.
Stages of forming a company
Registration of a company in Nigeria isn’t a challenging process, which is run in an e-portal. The stages of how an entity is established are as follows:
- Choosing and reserving company name (registration of company name in Nigeria);
- Completing all statutory forms;
- Bearing fees and taxes levied on written or e-transaction papers;
- Getting in reach with the appropriate bodies.
Paperwork
Once the requirements for company registration in Nigeria are satisfied, entities receive papers from the e-portal. The scope of papers includes constitutional documents which set out the basic management structure of the entity, and statements of compliance by lawyers. But for a statute, the authority only gives templates and then an owner gets them complemented.
To sum up
Typically, registering can be done within 2 to 7 days provided that there are no force majors. The sum of contributed capital is subject to the nature of business to be run and if a noncitizen-person is active in the entity. Individuals interested in requirements for company registration in Nigeria are advised to consult a lawyer to assess the correct shareowner threshold for certain rules for specific businesses and other peculiarities.
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